China
Xi Jinping is first Chinese president to attend Xinjiang anniversary celebration. Xi Jinping visited Urumqi to mark the 70th anniversary of the Xinjiang Uygur autonomous region, becoming the first Chinese president to attend the celebration. Accompanied by senior Politburo members, he met with ethnic and government representatives, promoting ethnic unity and Chinese national identity. Alcott Wei and William Zheng, South China Morning Post, September 23
China has policy window for more private sector support, official says. Wu Xiaoyan of the NDRC said China has room to enhance protections for private enterprises despite recent reforms, calling for stronger property rights, curbed administrative abuse, and improved legal safeguards. She noted investor confidence remains weak, with private investment down 2.3% in 2025, and emphasized the need for stable expectations to revive economic momentum. Carol Yang, South China Morning Post, September 23
Japan
LDP candidates focus on reform as presidential vote approaches. With the October 4 election nearing, Liberal Democratic Party leadership candidates pledged party reform and coalition-building at their first joint news conference. The contenders emphasized resolving internal divisions and possibly seeking a third coalition partner to regain legislative control. Five candidates officially entered the race as the campaign began Monday. Eric Johnston, The Japan Times, September 23
Japan’s recognition of Palestine state is a matter of ‘when,’ Iwaya says. Foreign Minister Takeshi Iwaya stated Japan’s recognition of Palestine is inevitable, emphasizing support for a two-state solution during a U.N. meeting. He condemned Israeli military actions and called for Hamas to release hostages and disarm. Around 80% of U.N. member states have recognized Palestine, with five new declarations made at the event. The Japan Times, September 23
South Korea
At UN, South Korean leader vows to reduce tensions with North Korea. President Lee Jae Myung told the UN General Assembly he seeks peaceful coexistence with North Korea through a phased approach to denuclearization, acknowledging it cannot be achieved quickly. He committed to easing military tensions and boosting inter-Korean exchanges despite Pyongyang’s rejection of talks and accusations of insincerity. David Brunnstrom, Reuters, September 23
Lee asks for UN support for new dialogue initiative on Korean Peninsula. President Lee Jae Myung met with UN Secretary-General Antonio Guterres to request backing for a dialogue initiative focused on exchange, normalization, and denuclearization to secure peace on the Korean Peninsula. Guterres praised the proposal and pledged support, while both leaders emphasized the importance of global cooperation and UN reform. Kim Eun-jung, Yonhap News Agency, September 24
Thailand
New Thai government aiming to present key policy statement before Sept 30, official says. Thailand’s new government plans to deliver its policy statement to parliament by September 30 to unlock up to 60 billion baht in stimulus funds before the fiscal year ends. The proposed measures include economic recovery initiatives, currency stabilization, and job upskilling, alongside maintaining electricity and water rates through year-end. Panarat Thepgumpanat, Reuters, September 23
Vietnam
Vietnam PM calls for more housing to cool real estate prices. Prime Minister Pham Minh Chinh urged accelerated housing construction to address affordability issues, as apartment prices rose 5.6% this year to 80 million dong per square meter. He proposed easing regulations for developers and instructing the central bank to lower real estate loan rates, while promoting social housing to curb inflation and support economic growth. Khanh Vu, Reuters, September 23
Lawmakers discuss amendments to security, order laws. Vietnam’s National Assembly Standing Committee reviewed a draft Law on Cybersecurity aimed at consolidating existing cybersecurity legislation into one unified law, expanding its scope to both domestic and foreign actors. Key provisions include stricter data security rules, clarified definitions for critical systems, and enhanced coordination among ministries. Another draft proposes updates to 10 security-related laws. Vietnam News, September 24
Cambodia
Defence Ministry denies firing into Thai territory. Cambodia’s Ministry of National Defence denied allegations from Thai military sources that its troops intentionally fired into Thai territory. The ministry confirmed two accidental shots were discharged and the issue was promptly addressed through bilateral communication. Officials reaffirmed commitment to the July 28 ceasefire agreement and ongoing cooperation with Thailand. Khmer Times, September 24
Philippines
House panel presses Rubio to secure Philippines funding to counter China threat. The U.S. House Select Committee on China urged Secretary of State Marco Rubio to safeguard funding for Philippine maritime security, warning that budget cuts could undermine American strategic interests. The committee cited intensified Chinese actions in the South China Sea, including near-collisions and water cannon incidents, as justification for continued support. Martin Petty, Reuters, September 23
ICC publicizes Duterte interim release request, shows PH, Netherlands, third state asked for input in July. The International Criminal Court revealed it had sought input from the Philippines, the Netherlands, and another unnamed country on former president Rodrigo Duterte’s interim release request, with a July 2 deadline. Duterte’s defense proposed the Netherlands as a host and pledged non-asylum, cost coverage, and compliance. Prosecutors oppose the release. Franco Jose C. Baroña, The Manila Times, September 24
Indonesia
Indonesia parliament passes Prabowo’s $231 billion budget for 2026. Indonesia’s parliament approved President Prabowo Subianto’s $231.5 billion 2026 budget, featuring increased social and defense spending and a 2.68% deficit, below the legal limit. Finance Minister Purbaya Yudhi Sadewa pledged to boost tax revenue and reduce reliance on debt, with new initiatives like free meals and regional transfers aimed at equitable growth. Stefanno Sulaiman, Reuters, September 23
Indonesia, EU seal trade deal, hope to offset Trump tariffs. Indonesia and the European Union concluded a free trade agreement removing import duties on over 90% of goods, aiming to double bilateral trade and reduce exposure to U.S. tariffs. The deal includes provisions for critical minerals and EV partnerships but faces hurdles from EU deforestation rules affecting palm oil exports. Sultan Anshori, Reuters, September 23
Taiwan
Taiwan August export orders beat forecasts on solid AI demand. Taiwan’s export orders rose 19.5% year-on-year in August to $60.02 billion, driven by strong demand for AI and high-performance tech products. Orders from the U.S. surged 33.6%, while those from China fell 0.7%. The government forecasts September orders to grow up to 22.7%, despite concerns over global trade policy and geopolitical risks. Faith Hung and Liang-sa Loh, Reuters, September 23
Saudi Arabia celebrates National Day in Taipei, pledges to enhance ties. Saudi Arabia’s representative to Taiwan, Mohammed S. Alghamdi, reaffirmed his commitment to strengthening bilateral relations during a National Day reception in Taipei. He highlighted Saudi Arabia’s role as Taiwan’s top energy supplier and largest Middle East trading partner. Taiwan’s Deputy Foreign Minister François Wu expressed interest in expanded cooperation in technology, trade, education, and tourism. Joseph Yeh, Focus Taiwan, September 23
Nepal
Nepal’s caretaker PM navigates fragile peace amid youth revolt, party pushback. Prime Minister Sushila Karki faces mounting pressure to deliver elections within six months and address demands from Gen Z protesters seeking arrests of corrupt leaders and justice for 74 killed. While pledging reforms, Karki risks backlash from entrenched parties. Analysts warn failure could plunge Nepal into prolonged instability. Gopal Sharma, Aftab Ahmed, Reuters, September 23
Sri Lanka
From crisis to cannabis: Sri Lanka’s president surprises with pro-market pivot. President Anura Kumara Dissanayake has launched sweeping pro-market reforms, maintaining IMF commitments and restructuring the state power monopoly despite union pushback. The government expects $100 million in cannabis-based medical oil exports and plans $3 billion in refinery upgrades. Officials forecast up to 6% growth next year, targeting expanded foreign investment and energy reform. Uditha Jayasinghe and Krishna N. Das, Reuters, September 23
Kazakhstan
Kazakhstan to deepen ties with US as Tokayev engages business leaders in New York. President Kassym-Jomart Tokayev highlighted expanded U.S. investment and proposed new initiatives in energy, agriculture, education, and culture during meetings with top American companies. With over $100 billion in U.S. investments and 630 firms operating locally, he emphasized Kazakhstan’s role in regional development and called for deeper academic and innovation partnerships. Fatima Kemelova, The Astana Times, September 23
Uzbekistan
Trump touts deals with Uzbekistan, Kazakhstan worth billions. Donald Trump praised Presidents Shavkat Mirziyoyev and Kassym-Jomart Tokayev after their governments signed major contracts with U.S. firms, including Uzbekistan’s $8 billion purchase of 22 Boeing 787s and Kazakhstan’s $4.2 billion freight rail deal. The agreements aim to strengthen the Middle Corridor trade route and signal growing Central Asian alignment with U.S. economic interests. Eurasianet, September 23
East Asia
China’s local governments urgently need cash. Can the 5-year plan find it? Local revenues have slumped as land sales collapsed after 2021 and VAT intake weakened amid slower growth and deflation, prompting increased tax enforcement on overseas income and higher non-tax charges. In 2024 tax revenue fell 3.4% to 17.5 trillion yuan, while overall fiscal revenue rose 1.3% to 21.97 trillion largely from a 25.4% jump in fees and fines; tax equals about 13% of GDP versus roughly 34% in the OECD. Policy debates for the 15th five-year plan include raising VAT rates, reallocating VAT by destination, changing consumption tax collection to retail and sharing proceeds with localities, and expanding direct taxes, notably personal income tax. Property tax expansion appears unlikely while real estate remains weak. Ji Siqi, South China Morning Post, September 24
Southeast Asia
Trump tariffs tilt Southeast Asia towards China. Reciprocal US tariffs on 2 April 2025 jolted Southeast Asian economies that had banked on stable access to US demand. Governments sought bilateral accommodations, with Vietnam pursuing aircraft and LNG purchases while facing volatile terms. Regional leaders attempted coordination; ASEAN under Malaysia’s Anwar Ibrahim urged restraint on retaliation and deeper intra-ASEAN integration, though Washington rejected a summit. Elevated uncertainty threatens investment, supply chains, and growth. China positions as a beneficiary rhetorically, yet weak domestic demand limits capacity to replace US consumption, even as Chinese exports surge into ASEAN markets, intensifying competition. The balance of influence will hinge on how deftly Beijing and Southeast Asian states manage tariffs, diversification, and governance. Susannah Patton and Robert Walker, East Asia Forum, September 23
Myanmar’s human capital on the brink. The 2021 coup shattered socioeconomic foundations, with the World Bank projecting a 2.5 per cent GDP fall in fiscal year 2025–26. Youth face conflict, forced conscription, insecurity, curtailed schooling, and poor job prospects, driving emigration intent among tertiary graduates. Junta measures deepen harm through import substitution, coerced foreign loan defaults, military outlays, money creation, and depletion of foreign exchange. A March 2025 earthquake and militarization of education eroded capacity; enrollment is 47 per cent, leaving 7 million children out of school. Aid delivery meets blockades, curfews, and funding cuts, with only 12 per cent of the UN’s 2025 plan financed. Recovery requires an opposition to coordinate policy, operations, and engagement. Myat Sandar Zaw, East Asia Forum, September 23
A China–ASEAN mechanism to power the clean energy transition. ASEAN’s clean energy buildout is accelerating, yet policy fragmentation, weak standards, and limited skills risk locking the region into low-value roles. China is the largest financier and leads in EVs and batteries, but investment momentum alone will not deliver resilient supply chains. April 2025 US tariffs of up to 3500 per cent on ASEAN solar exports exposed vulnerability. A dedicated China–ASEAN energy–industrial mechanism could align policy, labor upgrading, finance, and ESG safeguards through mandated working groups, training hubs, and bankable pipelines linked to policy banks and industry. Early participation by Indonesia, Vietnam, and Malaysia would demonstrate feasibility, with co-chairs balancing continuity and ownership and firms committing capital. Kevin Zongzhe Li, East Asia Forum, September 24
For Myanmar’s Garment Sector, Tariffs are a Setback, not a Knockout Blow. US “reciprocal” duties set Myanmar’s rate at 40 percent in July after an April round near 44 percent, exposing apparel producers to cancellations, closures, and redirected orders. Exports had already pivoted away from America, falling from US$820 million in 2022 to US$488 million in 2024 within a roughly US$7 billion industry, softening immediate damage. Competitive wages, idle capacity, and EU preferences sustain output, though investment and bags travel-goods lines face risk. Inputs from China continue rising and some buyers seek alternatives in Bangladesh, while capacity constraints elsewhere create openings. Longer tariffs could reshape sourcing and weaken China+1 logic, yet temporary measures or higher Chinese retaliation could blunt impacts overall. Jared Bissinger, FULCRUM, September 23
Prabowo, Xi and Putin: Indonesia’s quiet pivot towards a China-led future? Indonesia’s new president signals a firmer alignment with Beijing and Moscow on sovereignty, order, and security, loosening Washington’s pull. Prabowo favors discipline and centralized authority, sees liberal models as disorderly, and prioritizes autonomy. China’s position deepens through Belt and Road projects, industrial upgrading, and defence ties, while Russia remains a long-standing arms partner. The orientation complicates US containment plans like AUKUS and the Quad, even as Jakarta preserves nationalism and room for friction over maritime issues. Beijing’s play is patient engagement that embeds cooperation across infrastructure, technology, and military exercises, preventing a drift back to the US and consolidating Global South narratives that dilute American influence, regionally focused. Ronny P Sasmita, ThinkChina, September 23
Politics in a Post-Shinawatra Thailand. Anutin Charnvirakul became prime minister on September 7 after Paetongtarn Shinawatra’s dismissal over a leaked call during a Thailand–Cambodia border crisis, ending a summer stalemate. A deal between conservative Bhumjaithai and progressive People’s Party enabled the vote, with commitments to call elections within four months and begin constitutional reform, setting a test for democratic trajectory. The Senate’s prime-ministerial veto expired in 2024, removing a prior block on reformist leadership, but coercive tools remain. Relations with China have tightened, notably Bangkok’s deportation of Uyghur men, while US ties were strained by tariffs yet improved through ceasefire diplomacy. Border incidents still threaten the truce, and failure to honour election pledges could reignite youth-led protests at national scale. Bryanna Entwistle, Asia Society, September 23